Regarding Incentives, Which of the Following Statements Is FALSE

question 145

Multiple Choice

Regarding incentives, which of the following statements is FALSE?

• A)Our actions are energized by a mixture of internal needs and external incentives.
• B)Incentive value cannot be used to explain the drives for success, status, and approval.
• C)Some goals are so desirable that they can motivate behavior in the absence of an internal need.
• D)Some goals are so low in incentive value that they may be rejected even if they could meet the internal need.

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Definitions:

TFC

stands for Total Fixed Costs, which are the costs that do not vary with the level of production or sales, such as rent or salaries.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, showing the cost of each unit's share of the fixed expenses.

Average Variable Cost

Average variable cost is the total variable cost divided by the quantity of output produced, indicating the variable cost incurred per unit of output.

Total Cost

The sum of all costs incurred by a business in producing a given level of output, including fixed and variable costs.